CC MEETING: May 17, 2016
DATE: May 11, 2016
TO: Leonard Martin, City Manager
FROM: Laurie Garber, City Secretary/Admin. Services Manager
Title
Consider An Ordinance Approving A Negotiated Settlement Between The Atmos Cities Steering Committee ("Acsc") And Atmos Energy Corp., Midtex Division Regarding The Company's 2016 Rate Review Mechanism Filings; Declaring Existing Rates To Be Unreasonable; Adopting Tariffs That Reflect Rate Adjustments Consistent With The Negotiated Settlement; Finding The Rates To Be Set By The Settlement Tariffs To Be Just And Reasonable And In The Public Interest; Requiring The Company To Reimburse Acsc's Reasonable Ratemaking Expenses; Determining That This Ordinance Was Passed In Accordance With The Requirements Of The Texas Open Meetings Act; Adopting A Savings Clause; Declaring An Effective Date; And Requiring Delivery Of This Ordinance To The Company And The Acsc's Legal Counsel.
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BACKGROUND:
The City, along with other similarly situated cities served by Atmos Energy Corp., Mid-Tex
Division ("Atmos Mid-Tex" or "Company"), is a member of the Atmos Cities Steering Committee ("ACSC"). The RRM Tariff was originally adopted by ACSC member cities in 2007 as an alternative to the Gas Reliability Infrastructure Program ("GRIP"), the statutory provision that allows Atmos to bypass the City's rate regulatory authority to increase its rates annually to recover capital investments. The RRM Tariff has been modified several times, most recently in 2013.
The 2016 RRM filing is the fourth RRM filing under the renewed RRM Tariff. On March 1, 2016, Atmos made a filing requesting $35.4 million additional revenues on a system-wide basis. Because the City of Dallas has a separate rate review process, exclusion of Dallas results in the Company requesting $28.6 million from other municipalities.
Environs customers (ratepayers outside municipal limits) remain under the Railroad Commission's exclusive original jurisdiction a...
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